Leasing a car- LLP- private/business usage
Discussion
We run a well established LLP business, two partners (me and OH), VAT registered.
I've never leased a car, and am currently looking at putting a lease car through the business, emissions less that 120g/km. As I understand, if the vehicle used solely for business, the lease costs incurred go straight through the books, plus we can reclaim half of the VAT back, plus expenses like fuel etc. No BIK is applicable.
But there will be a proportion of private use. In terms of work, we would be visiting clients and jobs on site, commuting, accountant runs, procurement, etc. But there will be an honest element of private usage. Collecting kids from school, popping to supermarket etc. For the sake of argument, a 50/50 split.
The question is, as there is a split, can we put the full lease payment through the books, or seeing as it is 50/50, just half of the payments?
I've never leased a car, and am currently looking at putting a lease car through the business, emissions less that 120g/km. As I understand, if the vehicle used solely for business, the lease costs incurred go straight through the books, plus we can reclaim half of the VAT back, plus expenses like fuel etc. No BIK is applicable.
But there will be a proportion of private use. In terms of work, we would be visiting clients and jobs on site, commuting, accountant runs, procurement, etc. But there will be an honest element of private usage. Collecting kids from school, popping to supermarket etc. For the sake of argument, a 50/50 split.
The question is, as there is a split, can we put the full lease payment through the books, or seeing as it is 50/50, just half of the payments?
Eric Mc said:
How are you normally remunerated through the LLP i.e. do you draw a salary which is taxed under PAYE or do you take a share of partnership profits?
We take an equal 50/50 share of the partnership profits (two partners), and pay the appropriate tax based on the annual profit of the business.Edited by olly755 on Tuesday 22 January 16:03
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